Against the creators of ICO, which promoted Boxing champion Floyd Mayweather Jr. filed a class action lawsuit. In the lawsuit of 13 December Sohrab Sharma (Sohrab Sharma), Raymond Trapani (Trapani Raymond), Robert Farkas (Robert Farkas), William Hagner (William Hagner), as well as the company Centra Tech, Inc., alleged violation of the securities Act, in connection with the initial placement of tokens. In the framework of the ICO has collected $ 30 million for the development of debit cards for cryptocurrency.
The lawsuit was filed a month later after two of the founder of a startup, left the company. According to records
blog Centra dated October 31, Sharma and Trapani left the project after the completion of the sale of tokens. In the lawsuit the plaintiff’s lawyers argue that the sale of tokens Centra was a unregistered offer and sale of securities. The statement says:
«…in the framework of initial placement of tokens Centra («Centra ICO»), the defendants collected more than $ 30 million in the cryptocurrency, offering and selling unregistered securities that directly violates the Law on securities».
In the lawsuit defendants also charged that they have introduced investors misled about their relationships with Visa and Mastercard, as well as what they have mentioned on their website non-existent team members. The statement in his blog, the Centra team disputes the claim filed, «presumably the buyers of tokens Centra».
«In the lawsuit, where for the most part repeated unfounded claims against Centra Tech, it is argued that in the framework of the ICO Centra Tech has made sales of unregistered securities. The complaint of the plaintiffs is trying to imitate the statements and assertions of the Commission on securities and stock exchanges, which made them in relation to other IPOs tokens. Centra Tech rejects the unfounded allegations raised in the lawsuit», — say representatives of a startup.
ICO Centra actively promoted boxer Mayweather, as well as a music producer and hip-hop artist DJ Khaled until its completion. The advertising message Mayweather in Instagram
and Facebook, appears to have been removed, as the entry in Instagram
from DJ Khaled which is also unavailable at the time of publication. In the lawsuit, neither Mayweather nor Khaled does not appear.
Plaintiff Jacob Zowie (Zowie Jacob) in court is a law firm Komlossy Law and Levi & Korinsky LLP. The full text of the statement of claim can be found here.